As part of its ongoing strategy to acquire unique hospitality assets anchored by strong underlying real estate and with unique repositioning opportunity, a Gencom-led partnership has announced the acquisition of two resort assets situated along St. Pete Beach, Florida.
The Beachcomber Beach Resort and Hotel and The Grand Plaza Beach Hotel & Beach Resort were acquired at a reported purchase price of $100 million. The partnership will commit an additional $24 million for major renovations to upgrade and rebrand the two properties.
While both assets will initially remain independent and unbranded, BENCHMARK®, a global hospitality company, has been retained to manage and reposition the two properties on St. Pete Beach, a resort island off the coast of St. Petersburg in Tampa Bay and within the heart of Florida’s popular Gulf Coast. Gencom and Benchmark forged a strategic management partnership in 2016.
“The purchase of the two St. Pete Beach properties represents a continuation of our firm’s strategy to seek out profitable hospitality investments in locations with strong market fundamentals and opportunities to create value through active management and repositioning,” said Alessandro Colantonio, Gencom’s executive vice president Acquisitions & Capital Markets. “Benchmark’s experience in every aspect of hotel management and marketing and its pioneering role in the development of experiential travel will enable us to maximize these assets through a far-sighted renovation program and productive reorganization.”
Gencom’s Miami-based acquisition and capital markets group led the sourcing, underwriting and closing of the acquisition which included securing equity co-investment and placement of acquisition financing. Post-closing, Gencom’s asset management team will work closely with Benchmark to oversee the planned renovation and repositioning initiatives.
“Gencom is excited to add these properties to its portfolio and to expand our strategy with Benchmark,” said Karim Alibhai, Gencom’s founder and principal. “We continue to be bullish in hospitality, for the right opportunities, and we were driven by the positive market trends and underlying real estate characteristics of these assets.”
The high-rise Grand Plaza Beach Hotel & Beach Resort offers 156 rooms and four food and beverage outlets, while the Beachcomber Beach Resort and Hotel consists of 102 rooms and two restaurants, including the award-winning Jimmy B’s Beach Bar and Grill.
About BENCHMARK®, a global hospitality company.
BENCHMARK®, a global hospitality company, is a leader in the development, management, and marketing of independent, soft branded, and experiential hard branded resorts, hotels, and conference centers. In addition to the company’s award-winning full service Benchmark Resorts & Hotels, its lifestyle and luxury Gemstone Collection, and its industry-leading Benchmark Conference Center division, etc.venues is a leading provider of contemporary city centre venues for meetings, signature events, and conferences. BENCHMARK’s combined portfolio features more than 80 unique projects across three continents. The company is passionately committed to delivering personal, inspiring, and memory-making experiences, driving total revenue and profitability, and cultivating an award winning, “Be The Difference” culture for all its employees. BENCHMARK, is based in The Woodlands (Houston), Texas, with offices in London, England; Miami, Florida; Park City, Utah; Scottsdale, Arizona; New Brunswick, New Jersey; Seattle, Washington; and Tokyo, Japan.
Founded in 1987 by Karim Alibhai, Gencom is one of the nation’s leading domestic and international investment and development firms specializing in the hospitality and luxury hospitality related residential real estate sectors. Headquartered in Miami, Gencom is fully-integrated and highly diversified, with expertise in virtually every aspect of development, acquisition, financing, asset management and sales of hospitality properties. Gencom has had success not only in developing, purchasing and exiting single assets and hotel portfolios, it also has been successful in creating, purchasing and growing hospitality platform investments, throughout the United States, Caribbean and Europe, including Gencom American Hospitality, Patriot American Hospitality, Carnival Resorts and Interstate Hotels. Gencom companies’ successful track record has led to significant ventures with prominent institutional investors, prominent family groups and other strategic partners both domestically and internationally. For more information about Gencom, please visit www.gencomgrp.com.